The Official FiPG Investment Thread

Live forum: http://forum.freeipodguide.com/viewtopic.php?t=74640

JordanE

15-03-2008 23:36:13

Well every couple of months or so a new thread pops up with someone looking for advice, so I figure one solid thread where everyone can share there opinions on brokerages, High yield savings accounts or maybe stock picks could be beneficial.

As of latly i've mostly been trading in pennies which has actually been working out pretty well for me. I was one of many who made a killing (got out after making alittle over 4k) on CCTC but was one of the lucky few who got out before the shit hit the fan as it usually dose in penny land.

After taking pretty bad losses on RVGD over the last two weeks (down about 50%) it looks like its finally going to rebound, had strong buying pressure yesterday after some good PR looks like it should have a strong week coming up.

As far as commodities, I picked up 150 oz's of silver @ 16.90/oz back in february. As of right now the spot price is $20.70 for a total gain of $570 not bad for such a conservative investment.
By the way if anyone is looking to pick up some precious metals, I highly recommend bulliondirect (www.bulliondirect.com) there prices are about close to spot as it gets for the average investor plus the Nucleo Exchange is pretty cool.

For my brokerage I have been using TDAmeritrade for awhile, but I am slowly trying to switch over to Zecco since I mainly trade pennies the $20 round trip commision fees from ameritrade really starts to get annoying for me, since I typically make anywhere from 5-10 trades a week.

Dose anyone here use Zecco? So far for me it looks like it will be a God send. 10 free trades a month (if you keep your account value at atleast $2,500 which shouldn't be hard for most) and then just $4.50 a trade after that. I will be testing them out this week and hopfully if all gose well will be using them for now on. I am really looking forward to saving $200-$300 a month on commisions. With that savings I plan on putting it into my ING account.

So whats everyone else playing right now?

J4320

16-03-2008 01:33:49

It seems like you're really knowledgeable in areas like this and economics. Is your dad really into this kind of stuff or something or are you just naturally into it? I don't mind this kind of stuff and I'm pretty good at investments and etc but I wish I had a yearning for it.

JordanE

16-03-2008 02:04:27

My dad dose IT project management consulting and olny buys stock he dosen't really have to watch much or trade often. I think right now he owns

Google
Berkshire Hathaway
Microsoft
Starbucks

My interest in economics is just something that came naturally. I know its kind of a weird for someone of my age but, I enjoy it.

JKirk

16-03-2008 08:39:52

Berkshire Hathaway, I hope you mean the one that isn't $130,000+. shock I want to buy gold right now, what do you think of it?

samz465

16-03-2008 10:48:25

Gold is at $1000 an ounce. You should have gotten in on that a year ago.

JordanE

16-03-2008 11:48:13

[quotef86a5843fb="JKirk"]Berkshire Hathaway, I hope you mean the one that isn't $130,000+. shock I want to buy gold right now, what do you think of it?[/quotef86a5843fb]

BRK.B He got in at $4,210/share


[quotef86a5843fb="samz465"]Gold is at $1000 an ounce. You should have gotten in on that a year ago.[/quotef86a5843fb]

I wouldn't be surprised to see gold dip below $950 this week before quickly getting back up to $1,000/oz.

I will be watching closely for a dip, in the case of such an event I will picking yup 2-3oz's for a short hold.

Jeremiah1218

16-03-2008 13:10:37

I currently don't have anything invested right now but its definitely something I'd be interested in doing. Right now I probably only have a few hundred that I can use to get started, so what would you recommend I begin with? I'm lookin for something with less of a risk for now even if it means I may not make as much of a return on it....I figure if I can build up money slowly and just keep saving then I can go for the bigger stuff. Any tips and info are appreciated.

JordanE

16-03-2008 13:47:12

If your wanting to invest in stocks then your probably looking for blue chips as they far less of a gamble than pennies. My picks would be

[bdf2c68296f]Dicks Sportig Goods[/bdf2c68296f] (symbol DKS) its currently trading for $28.18. They are a sporting good mega store chain well established in the midwest and are on the verge of building a strong presents further out west. Sporting goods have also been proven resilient during times of recession.

[bdf2c68296f]Electronic Arts[/bdf2c68296f] (symbol ERTS) currently trading at $46.91. With the WII, PSP, PS3 and Xbox 360 video [idf2c68296f]game[/idf2c68296f] sales are on the rise and EA is one of the biggest players in this market. Video games have also down well (compared to others) during economic decline.

[bdf2c68296f]Starbucks[/bdf2c68296f] (symbol SBUX) curently $17.39 The stock price has been falling as of late which I think offers a good buying opportunity. Once the internal issues are sorted out the company should go back on the rise.

TravMan162

16-03-2008 13:51:08

[quote3c9d2d566d="JordanE"]If your wanting to invest in stocks then your probably looking for blue chips as they far less of a gamble than pennies. My picks would be

[b3c9d2d566d]Dicks Sportig Goods[/b3c9d2d566d] (symbol DKS) its currently trading for $28.18. They are a sporting good mega store chain well established in the midwest and are on the verge of building a strong presents in further west. Sporting goods have also been proven resilient during times of recession.

[b3c9d2d566d]Electronic Arts[/b3c9d2d566d] (symbol ERTS) currently trading at $46.91. With the WII, PSP, PS3 and Xbox 360 video [i3c9d2d566d]game[/i3c9d2d566d] sales are on the rise and EA is one of the biggest players in this market. Video games have also down well (compared to others) during economic decline.

[b3c9d2d566d]Starbucks[/b3c9d2d566d] (symbol SBUX) curently $17.39 The stock price has been falling as of late which I think offers a good buying opportunity. Once the internal issues are sorted out the company should go back on the rise.[/quote3c9d2d566d]

what else can you suggest?

I must admit, I dabbled last year and lost my shirt. I didn't know what the hell i was doing and completely screwed everything up D

I also have about $500 sitting in my Scottrade account not invested in anything and I was either going to wait like someone like you to come along and tell me what to do with it, or I was going to withdraw it and throw it in the savings.

What do you think?

JordanE

16-03-2008 15:23:55

What are your goals? What about your risk tolerance? Are you looking to take it slow and steady? Or High Risk High Reward?

JKirk

16-03-2008 15:32:21

Starbucks has been going lately due to the fact McDonalds has announced they will be trying to compete in the coffee market. I'd say it depends on how well McDonalds does with their coffee products as to whether they will go back up significantly or not.

JordanE

16-03-2008 16:42:22

[quotebca0ccc600="JKirk"]Starbucks has been going lately due to the fact McDonalds has announced they will be trying to compete in the coffee market. I'd say it depends on how well McDonalds does with their coffee products as to whether they will go back up significantly or not.[/quotebca0ccc600]

The biggest problem facing starbucks is they have over saturated there own market. Initially this wasn't necessarily a bad move, as when the rapid expansion begun the economy wasn't facing recession and business was soaring.

However, the "More Stores = More Money" philosophy is now coming back to haunt them. I believe bringing back Mr. Schultz as CEO was a smart move. His plans of closing down slow stores and bringing back the "personal touch" that originally made starbucks popular 10 years ago are the most solid options they have at the moment. In a sense making a trip to a starbucks an event, not just another stop.
This is something McDonalds will never be able to do regardless of the quality of the product they are offering, there store atmosphere and business structure are not setup for this. Starbucks on the other hand is, and this is what they where originally designed for.


That being said, I am looking at starbucks as a potentially good shorthold but I don't think it has hit its bottom just yet. I would look for it to get into the 16's before putting in a buy order.

TravMan162

16-03-2008 16:46:56

[quote29a841566b="JordanE"]What are your goals risk tolerance? Are you looking to take it slow and steady? Or High Risk High Reward?[/quote29a841566b]

basically, if it's possible, I'd like to take that $500, put it in something and gradually have it grow. I don't want to lose anymore money haha. But actually, I'm going to be finding myself in a financial quandry soon and it would help if there were quick results, but that is obviously easier said than done.

What do you suggest, keeping in mind i only have the $500

manOFice

16-03-2008 17:36:22

anyone know anything about "FID FREEDOM 2050" ??

JordanE

16-03-2008 19:14:31

[quoteda2a3eca77="TravMan162"][quoteda2a3eca77="JordanE"]What are your goals risk tolerance? Are you looking to take it slow and steady? Or High Risk High Reward?[/quoteda2a3eca77]
basically, if it's possible, I'd like to take that $500, put it in something and gradually have it grow. I don't want to lose anymore money haha. But actually, I'm going to be finding myself in a financial quandry soon and it would help if there were quick results, but that is obviously easier said than done.

What do you suggest, keeping in mind i only have the $500[/quoteda2a3eca77]

Are you willing to check in on it through out the day?

For you, I am thinking about $100 worth of pennies I have in mind and then hedge that with the other $400 in more consistent and conservative blues and ETF's.

Ideally with the hedge, even if the you tank the penny you still walk away with your $500 and hopfully alittle more.. If you have the time to play the penny right, you could get that quick result you are looking for this week.

Answer my first question and then we can go from there.

TravMan162

16-03-2008 19:36:53

well i work from 7-330 everyday. i get a break at 915, a break at noon and a break at 2. It's a workshop, but I have some computer stuff where I get on the computer once or twice a day too. so that is five times potentially during the workday i can get on. is that enough?

JKirk

16-03-2008 19:47:25

[quotedf65c366db="TravMan162"]well i work from 7-330 everyday. i get a break at 915, a break at noon and a break at 2. It's a workshop, but I have some computer stuff where I get on the computer once or twice a day too. so that is five times potentially during the workday i can get on. is that enough?[/quotedf65c366db]

I'd say the more times you can check it the less percent chance you are going to lose a lot of money so I would be asking myself that as well as Jordan. I would love to play around with it but I think it's kind of like gambling, IMO, unless you really do a lot of studying in the market. What is the outcome you are looking for though basically?

TravMan162

16-03-2008 19:58:31

i just want to do something to try and bring in some extra money. I can get into it, i started to. I own both of Jim Cramer's books and I really am interested in it, but when i did it before and got my ass kicked, it was because I didn't really have a teacher and I just went in blind, tried some things and failed miserably.

I want to start trying to build a safety net because times are getting tough and I'm still struggling to pay my mortgage and keep food in my belly, you know? I don't have much money to my name. Maybe a little over 2,000 and if something happens to me or my house, I'm going to be in trouble. I just wanted to start somewhere and start building.

Jordan obviously knows what's up and he seems like he could help me out. If he wants to that is. It sucks on here cuz you don't know these people and there's no real way to repay them for the nice things they do for you. Like DMorris has given me some really valuable advice, and now Jordan looks like he wants to help, and unless they end up needing advice on something I actually know something about, the only thing I can do for them is Karma haha.

Ha, that's probably way more info than what you were asking for D D D just my way of telling everyone I appreciate them and if I get a chance to help out, I absolutely will D D D

manOFice

16-03-2008 20:12:49

401k trav ;)

Edit Check out http//www.updown.com/ site looks cool hehe

JKirk

16-03-2008 20:27:44

[quotefca3417cad="manOFice"]401k trav ;)

Edit Check out http//www.updown.com/ site looks cool hehe[/quotefca3417cad]

I use UpDown, it's pretty fun actually. I just picked a million dollars worth of my favorite companies and Microsoft tanks as soon as I buy $200,000 worth of 'em. roll I'm down like to like $960,000 after being up like $40,000.

manOFice

16-03-2008 20:34:51

[quotec38c1d1c81="JKirk"][quotec38c1d1c81="manOFice"]401k trav ;)

Edit Check out http//www.updown.com/ site looks cool hehe[/quotec38c1d1c81]

I use UpDown, it's pretty fun actually. I just picked a million dollars worth of my favorite companies and Microsoft tanks as soon as I buy $200,000 worth of 'em. roll I'm down like to like $960,000 after being up like $40,000.[/quotec38c1d1c81]

lol lol

I"m def gonna start up on that site tomorrow

Edit I just bought a bunch of stock for the company i work for on updown, hehe

JordanE

16-03-2008 21:42:47

[quotec74e65619f="TravMan162"]well i work from 7-330 everyday. i get a break at 915, a break at noon and a break at 2. It's a workshop, but I have some computer stuff where I get on the computer once or twice a day too. so that is five times potentially during the workday i can get on. is that enough?[/quotec74e65619f]

Potentially yes. However, what you need to ask yourself is if you lost most or even all of the $100 would you miss it? Can you afford to lose it?

What I would do is figure out how much of the $100 you are willing to lose then set a sell trigger accordingly . That way if your not watching it at the time and the stock starts to implode it will automatically attempt to sell it at the price you specified.

JordanE

16-03-2008 21:47:43

[quote9b7b1b60b5="TravMan162"]i just want to do something to try and bring in some extra money. I can get into it, i started to. I own both of Jim Cramer's books and I really am interested in it, but when i did it before and got my ass kicked, it was because I didn't really have a teacher and I just went in blind, tried some things and failed miserably.

I want to start trying to build a safety net because times are getting tough and I'm still struggling to pay my mortgage and keep food in my belly, you know? I don't have much money to my name. Maybe a little over 2,000 and if something happens to me or my house, I'm going to be in trouble. I just wanted to start somewhere and start building.

Jordan obviously knows what's up and he seems like he could help me out. If he wants to that is. It sucks on here cuz you don't know these people and there's no real way to repay them for the nice things they do for you. Like DMorris has given me some really valuable advice, and now Jordan looks like he wants to help, and unless they end up needing advice on something I actually know something about, the only thing I can do for them is Karma haha.

Ha, that's probably way more info than what you were asking for D D D just my way of telling everyone I appreciate them and if I get a chance to help out, I absolutely will D D D[/quote9b7b1b60b5]


After reading this post it has become clear that pennies (in any amount) arin't going to be for you right now.

I'm going to revise the strategy I had planned for you with something alittle more conservative.

brb

emoneymaker2006

17-03-2008 05:11:19

Since this is an investment thread, what are your thoughts about Bear Sterns being bought by JPMorgan.

The firm which was valued $20B 10 months ago was bought over the weekend for $230+ million, about $2 a share.

The credit crisis is taking everything in its path - but made too many risky bets in CDOs, etc.

ForceBucks

17-03-2008 05:21:53

Just another company that got crushed by the subprime crisis. JP took a nice deal. I am sure it will pay off when we go on the upswing again.

KnightTrader

17-03-2008 20:14:16

My stock picks.

I'm invested in FMT at the moment. I have 8000 Shares, bought in at 0.45, Risky investment, but It has potential for a huge rebound. We'll see what happens.

Other stocks I like at the moment

ETFC...

Thats about it. I Think financials took way too hard of a beating lately, even with the Bear Stearns news. JPM is a long term play now, with the acquisition of Bear. I'd buy some puts on Goldman and Lehman for sure, at least for the short term speculation, especially prior to an earnings release.

JordanE

17-03-2008 22:03:41

How long ago did you get in FMT? Its been trading at 0.52 after hours.. puts you at $560 profit. Congrats!

I'm in ETFC aswell.. I got in @ 3.00. I'm only holding 500 shares but i'm thinking about getting out with my $120 profit and maybe getting in again later. It looks like it has some room to fall and I don't have any interest in taking a dip with them.

KnightTrader

18-03-2008 14:06:18

I Got in on FMT about a week ago. I took a loss today, but not a huge one. I'm still confident that the stock will rebound. I made some cash off ETFC, buying at 2.80 or so, and getting out at 3.85 or so. Thats when I got into FMT, after freeing up some cash from ETFC.

manOFice

18-03-2008 14:21:44

I made quite a bit of fake money today

JordanE

18-03-2008 15:04:16

My precious metals prediction is coming true...

Metal Ask $ Chg
Gold $983.00 -$18.60[/colore68727032f]
Silver $19.80 -0.44 0.44[/colore68727032f]
Platinum $1960.00 -$13.40[/colore68727032f]
Palladium $482.00 -$1.30[/colore68727032f]

Looks like we're setting up for a good buying opportunity in the next couple days. In my opinion there hasn't been enough of a dip in silver or palladium to worrent a buy as of yet but we might see one this week. Platinum on the other hand shows some real potential. I haven't seen it spot @ under $2k in quit awhile. I would expect it to reach $2,200 again within two weeks. If you can afford it, this looks like a good time to get in.

I think we will see gold trade down tomorrow aswell, I wouldn't be surprised to see it go to about $960 tomorrow.

For those looking to get in the gold market but don't have the money to start acquiring coins or bars you might want to look into the Gold ETF (symbol GLD) Its trading at $96.50 (-$2.76[/colore68727032f]) The process of acquiring physical gold can be a long one. Usually the money is held for a week to ensure that the funds have cleared completly then another week or so wait for shipping. Right now if your just looking to make alittle money on the short the ETF is the best route as it is far more liquid than physical gold for a short hold.

KnightTrader

18-03-2008 19:26:28

Gold is going to shoot right back up, Before it falls to 950 IMO. The rate cut is going to destroy the dollar tomorrow, or in the coming days, and when the dollar goes down, gold goes up. So long as fed continues to cut the rate, gold prices will only increase.

manOFice

19-03-2008 06:16:04

KINROSS GOLD CORP (KGC)

KINROSS GOLD CORP (KGC) has paid dividends of $0.04 per share.

Your hold 300 shares of KINROSS GOLD CORP in your UpDown.com portfolio and $12.00 has been added to your cash balance.

Now if only I really invested real money! o_0

JordanE

19-03-2008 09:14:49

[quote6b2f21ceac="KnightTrader"]Gold is going to shoot right back up, Before it falls to 950 IMO. The rate cut is going to destroy the dollar tomorrow, or in the coming days, and when the dollar goes down, gold goes up. So long as fed continues to cut the rate, gold prices will only increase.[/quote6b2f21ceac]

Gold is at $942.50 right.. I have no doubt we're going to see it sky rocket right back up. Today we might see it close up but check out the prices. Great time to buy all 3 of the major PM's!

JKirk

19-03-2008 10:42:30

KnightTrader, what a ballsy move. shock I have to admit I commend you for even investing in such a situation, I'd be a nervous wreck. It had fallen short of $4.00 late in 2007 all the way to .45 now. You are right, you could be looking at some major gains and I'm not saying it's going to happen but what happened to make it fall so much and have they corrected it if it's controllable?

Invest in gold, eh? I want to but I have no prior experience in trading.

KnightTrader

19-03-2008 19:48:32

Took another hit today, But i'm holding. The company did get a big beating, and nothing is really preventing it from hitting 0, But the company could be a potential take over target, especially since they dumped most of their mortgage portfolio months ago.

Gigante

19-03-2008 22:14:22

I've been doubling down on financials as they continue to fall in order to decrease my average share purchase price. C, WM, WB are my faves because I like the more risky ones. WFC and BAC better for those not wanting the risk. Doubled down on CC and SBUX recently also.

WalMart and Disney for my long-term biggies. Eventually investors will wake up to these.

doylnea

20-03-2008 07:27:17

Two different articles this morning about commodities, and newb investors rushing in.

http//www.nytimes.com/2008/03/20/business/20commodity.html
http//online.wsj.com/article/SB120597392978550483.html?mod=pj_main_hs_coll

JKirk

20-03-2008 14:09:52

Anybody else doing UpDown.com? I still don't think it's too late to invest in Visa, BTW. shock

manOFice

20-03-2008 14:19:40

[quote0dab2c1bb1="JKirk"]Anybody else doing UpDown.com? I still don't think it's too late to invest in Visa, BTW. shock[/quote0dab2c1bb1]

i'm like addicted to that site now, heh

KnightTrader

20-03-2008 15:55:23

FMT Up 40%+ Afterhours. Huzzah. I'm still holding though.

mookieb2

20-03-2008 16:08:59

Where do you guys find your info for pennies?

Any good sites you can point me to?

Gigante

20-03-2008 18:37:34

Financial up big today. I was up 7% for the day, sweet. Might sell some into the strength 'cause I am up 10 or 20% on a few since when I bought them a month ago.

If I can give you advice on pennies, it's to watch out. They trade on such low volume that they are easily manipulated. It's easy for people with money to build sizable positions to boost stock price then dump it into the strength of everyone coming in. If you take 20%+ in a short time, I recommend taking the gain and not being greedy, but of course, this will limit your returns on some, but will help you on others. I don't trade penny stocks because it's pure speculation, and I'm not a gambler, I like to know the facts and be right.

JKirk

20-03-2008 20:51:49

[quotebc176703f2="KnightTrader"]FMT Up 40%+ Afterhours. Huzzah. I'm still holding though.[/quotebc176703f2]

How much do you have invested?

turbohim

21-03-2008 11:29:55

i stay away from "large" companies.

i bought 3500 shares of ONTY at $1.56
I also have DCGN and VIT. Also a "Chinese" Mutual fund

KnightTrader

21-03-2008 12:25:34

I only had 3,000 Invested into FMT. I Guess 40% Jumps isn't too bad for an afternoon, but It may not open that high on Monday. Time will tell.

turbohim

21-03-2008 12:52:16

i have $2500 invested in them. "Supposedly" the word is monday will be NICE for them ;)

KnightTrader

21-03-2008 16:43:43

2500 in FMT?

JKirk

21-03-2008 17:05:00

I don't know how you guys can sleep at night with money invested in penny stocks. ?

turbohim

21-03-2008 18:33:06

[quote55f49bd611="KnightTrader"]2500 in FMT?[/quote55f49bd611]

Yep )

JordanE

21-03-2008 20:25:18

[quote4f20b2a331="JKirk"]I don't know how you guys can sleep at night with money invested in penny stocks. ?[/quote4f20b2a331]

Pinks and BB's don't trade afterhours so I sleep pretty well )

KnightTrader

21-03-2008 21:22:46

I wouldn't call any stock on the Nasdaq/Nyse a penny stock. Penny stocks are traded on the pink sheets or otcbb. I don't normally put money in stocks trading this low, but I feel that FMT was oversold. Lets make some money on FMT =).

JordanE

21-03-2008 22:10:10

It depends on how you classify a penny stock. Since there is no real "offical" definition for the term its up to alot of personal interpretation. Most commonly, its any stock or security that trades at less than $5 a share.

I agree that most Nasdaq/Nyse "pennies" are a far safer investment (as if you could really call what we do investing..) than many pink sheet or OTCBB listed companies since they have more strict rules to follow in order to be traded on those exchanges.

deeball12

22-03-2008 00:56:47

Time tested strategy

Buy and hold good companies with solid earnings. If a good company is making money and gaining market share, eventually the stock price will go up. Dont rely on WALL STREET to tell you how good a company is doing, that is all noise. Trading is a guessing game. People that are right today are wrong tommorow. It is kind of funny how people only tell you how well they did on a trade and then you dont hear from them in a while. It is kind of like that friend of yours that has a gambling problem that tells you how much money he won on a bet and then asks you to borrow money a few months later. How is it that hedge funds with the best so-called traders fall flat on their face all the time. You want to invest, read and listen to Warren Buffet's philosophies (They are only worth 62 billion dollars)

turbohim

22-03-2008 02:58:57

Yeah warren buffet made billions by buying stocks in DOWNTRENDS. Not when they were doing well.

deeball12

22-03-2008 09:09:18

I mean seriously has ever even sold a stock before. I am pretty sure he must have some where along the road but he holds on to things forever

Gigante

22-03-2008 18:53:18

[quote892fc8ead7="deeball12"]I mean seriously has ever even sold a stock before. I am pretty sure he must have some where along the road but he holds on to things forever[/quote892fc8ead7]

He sells plenty, you will see this if you follow him.

It's hard to him to unload shares obviously since he is forced to take on such big positions.

Penny stocks are for teenagers that are learning and senior citizens that get suckered in.

But they aren't too bad for you guys, makes sense to buy penny stocks if all you are investing is pennies.

For anybody not investing, learn the time value of money, and understand that it's not worth taking on unnecessary risk like penny stocks. The only people that win in the end with penny stocks are those that know how to pump them and dump them.

And anything under a dollar is DEFINITELY a penny stock no matter what exchange it's on. Plus, why invest in those companies? They are that low for a reason. Hedge funds and institutions can't buy them because they will move them too much. They have problems buying anything under $10 and definite problems under $5.

JordanE

22-03-2008 23:14:10

I never buy a penny with the mind set that will be a long term investment or that I am going to make a ridiculous profit.

Personally I follow my own 30/20 strategy when to get out of a stock.

With very few exceptions I sell imediently if a stock drops by 30% of my original buy-in price. IMO the people who get in the most trouble are the ones who are unwilling to accept a loss. They either hold on to the bitter end, or in a desperate attempt to break even, they buy more shares (usually more than their original investment) to try to lower their average PPS. The later of the two can be especially devastating, given that penny stocks can and do quite often fall to almost unconceivable lows before truly correcting to the stocks real value.

On the positive side of the spectrum. I sell off to atleast cover my break even mark once I have realized a 20% gain.


As for long term investments I look for stocks that can atleast compete with precious metals. Gold and Silver have more than tripled in only the last 7 years, how many blue chips have that? Not many come to mind, if any at all..

Most serious traders consider a 20% annual gross return on a portfolio exceptional. Given current market conditions the average diy style investor is probably lucky to get a 10-12% annual return on their portfolio. While this can be lucrative for the wealthy (those with 50-200k invested) It is almost not even worth the risk and headache to the average person who, after paying the bills and other typical expenses probably only has $5-$10k left over to play around with.

Its hard to really get excited about a 10% annual return on $5,000 dollars ($500) when you think about the matince and work involved in achieving that 10%. Unless you have a general interest in finance, for most its probably not worth the hassle, and will probably be happier earning a 3.00 interest rate ($150 annually with a $5k balance) with an ING account while still enjoying being relatively liquid.

KnightTrader

23-03-2008 08:44:22

I don't "Normally" invest in pennystocks. This is the first time I've bought a stock under $2.50.

Gigante

23-03-2008 09:38:24

[quoted9e4fcb62b="JordanE"]
As for long term investments I look for stocks that can atleast compete with precious metals. Gold and Silver have more than tripled in only the last 7 years, how many blue chips have that? Not many come to mind, if any at all..[/quoted9e4fcb62b]

I cannot tell if you are serious or not, but definitely the worst investment advice given so far. You just used "Gold" and "long term investment" int he same sentence, wow....You are probably dumping money into gold right now, right?


[quoted9e4fcb62b="JordanE"]With very few exceptions I sell imediently if a stock drops by 30% of my original buy-in price. IMO the people who get in the most trouble are the ones who are unwilling to accept a loss. They either hold on to the bitter end, or in a desperate attempt to break even, they buy more shares (usually more than their original investment) to try to lower their average PPS. The later of the two can be especially devastating, given that penny stocks can and do quite often fall to almost unconceivable lows before truly correcting to the stocks real value.[/quoted9e4fcb62b]

IMO this is terrible advice with any investment. a 30% drop doesn't mean it is worth less. I purchased ADS on a dip recently of over 30% in one day when a merger didn't go through. I knew the market overreacted so I took advantage. If you had owned it you would have sold at a 40% loss while I was buying, only to make almost that much the next day. If you are "holding" a stock that is the same as "buying" because you could easily sell the stock an invest it elsewhere. I am always buying and selling, I don't "hold" even though I do hold. Every stock I own I would buy again at the price it is. When it drops further below this price, I LIKE IT EVEN MORE. Stock I love drops 10%, I double my investment. 20%? Quadruple. If it is a stock I believe in that I love, I should love it more when it dips 30%, not "sell this loser". The only reason to have this attitude is when you know nothing about the stock and are purely speculating, which could make sense in your case since these companies are purely symbols with some share value and periodic press releases from the companies. There is nothing down there to protect you.

[quoted9e4fcb62b="JordanE"]Most serious traders consider a 20% annual gross return on a portfolio exceptional. Given current market conditions the average diy style investor is probably lucky to get a 10-12% annual return on their portfolio. While this can be lucrative for the wealthy (those with 50-200k invested) It is almost not even worth the risk and headache to the average person who, after paying the bills and other typical expenses probably only has $5-$10k left over to play around with.[/quoted9e4fcb62b]

Wealthy people are not those with 50-200k, those are average investors.


[quoted9e4fcb62b="JordanE"]Its hard to really get excited about a 10% annual return on $5,000 dollars ($500) when you think about the matince and work involved in achieving that 10%. Unless you have a general interest in finance, for most its probably not worth the hassle, and will probably be happier earning a 3.00 interest rate ($150 annually with a $5k balance) with an ING account while still enjoying being relatively liquid.[/quoted9e4fcb62b]

It takes no effort to earn 10%, it's called indexing. A well diversified portfolio will do even better. 10% is better than losing it all, but I guess people with real money involved and people with play money make very different investing decisions.

You're young, you have lots of time to learn. I don't think that's reason to throw your money away, but at least it won't be a lot in the grand scheme of things.

turbohim

24-03-2008 04:53:31

Edit

JKirk

24-03-2008 13:16:26

Anyways.......

Visa went back down as predicted, everyone said it was just a fast money IPO. I think it will go back up eventually though but I, myself, would have sold on Friday.

What do you guys think of Oracle? I'm thinking of investing in it if goes back down under $20.

KnightTrader

24-03-2008 18:11:15

Oracle is a solid buy below 20. Great for a long term investment. If I were to pick a stock for my safer, diversified portfolio in the tech industry, I'd go with Cypress Semiconductors though. I'm thinking about adding some banks to my safe portfolio as well. FMT did well today, but I'm still holding all 7000 of my shares.

JKirk

24-03-2008 19:53:37

[quoted169b9cf43="KnightTrader"]Oracle is a solid buy below 20. Great for a long term investment. If I were to pick a stock for my safer, diversified portfolio in the tech industry, I'd go with Cypress Semiconductors though. I'm thinking about adding some banks to my safe portfolio as well. FMT did well today, but I'm still holding all 7000 of my shares.[/quoted169b9cf43]

Agreed about Oracle. I will check out Cypress. You know, be careful, man, there's nothing wrong with quitting while you are ahead...

doylnea

27-03-2008 09:43:31

I fixed your title. It was killing me.

turbohim

29-03-2008 07:31:12

I am hoping for a nice FMT buyout at around $1.00 )

JordanE

29-03-2008 21:56:54

[quote11f459409f="doylnea"]I fixed your title. It was killing me.[/quote11f459409f]

What was it before?

TravMan162

29-03-2008 22:05:38

[quote3f441d6cfc="JordanE"][quote3f441d6cfc="doylnea"]I fixed your title. It was killing me.[/quote3f441d6cfc]

What was it before?[/quote3f441d6cfc]

I think you had "Official" spelled wrong.

Doyl went on a title-fixing rampage the other day.

By the way, you said you were going to think of a strategy for me, you said BRB, and then you never came back! Haha, it's cool I blow at stocks anyway, but that $550 I have sitting in Scottrade not doing anything is burning a hole in my pocket D

JordanE

30-03-2008 19:01:59

Yeah sorry, its been a busy last couple of weeks for me. I was just thinking about that actually. I will try to put something together for you in the next day or two.

TravMan162

30-03-2008 19:30:29

[quote4a5cbc989f="JordanE"]Yeah sorry, its been a busy last couple of weeks for me. I was just thinking about that actually. I will try to put something together for you in the next day or two.[/quote4a5cbc989f]

hey no worries bud, I know how it is, take your time, i didn't mean to make you feel obligated haha.

tjwor

30-03-2008 21:12:15

if anyone wants a free trading site, i've been on a good one recently...

www.updown.com

Has pretty good stuff, since i'm out of real money to invest (other than my stake in SIRI and DUCK) i'm doing the play money game, maybe I can win some real money with the deal!

check it out, and PM your email address to me if you want an invite from me, but not a big deal for me, u can go ahead and sign up instead of waiting...

JKirk

31-03-2008 05:29:18

[quotedbd1309bb0="tjwor"]if anyone wants a free trading site, i've been on a good one recently...

www.updown.com

Has pretty good stuff, since i'm out of real money to invest (other than my stake in SIRI and DUCK) i'm doing the play money game, maybe I can win some real money with the deal!

check it out, and PM your email address to me if you want an invite from me, but not a big deal for me, u can go ahead and sign up instead of waiting...[/quotedbd1309bb0]

ManOfIce and I both have it, is there anyway to share your portfolio?

tjwor

31-03-2008 11:00:07

[quote50aaf3c2f5="JKirk"][quote50aaf3c2f5="tjwor"]if anyone wants a free trading site, i've been on a good one recently...

www.updown.com

Has pretty good stuff, since i'm out of real money to invest (other than my stake in SIRI and DUCK) i'm doing the play money game, maybe I can win some real money with the deal!

check it out, and PM your email address to me if you want an invite from me, but not a big deal for me, u can go ahead and sign up instead of waiting...[/quote50aaf3c2f5]

ManOfIce and I both have it, is there anyway to share your portfolio?[/quote50aaf3c2f5]

right now you can't see eachother's portfolio's, but there is a friends list, and you can see their netgain, my username is tjwor, what is urs and i'll add you to my friends

punjabGTRR34

31-03-2008 11:36:35

Right now I own

9 Shares of APPL @ $178.20 (I bought 10 last year at $119ish; sold at $183ish; bought 3 more at like 165ish I think and sold at 184ish)

70 Shares of EMC @ Various Amounts - I bought it when it was going up. It a peak of $25ish and I didn't really pay attention to how the market was doing and how EMC was doing, hence I'm at a loss. Bought 30 first and then another 40 at around 19$

50 Shares of FXPE @ $2.45 - hoping this stock will go up. It hit a low of about 50cents and now its back up to $1.20

1 Share of JAVA - now this stock screwed me over big time. I bought 6 shares at around $6 a share after stupid comission fees. They did a 4 to 1 REVERSE Split and now i have 1 Share

I'm basically down a little over 1K =(

Oh well...

I guess I'm not really short term. If anybody has some tips on any penny stocks, please share. I have about $130ish sitting in my account that I could invest =)

Gigante

05-04-2008 18:39:23

Bought some AAPL at $148

turbohim

15-04-2008 19:10:21

yikes to fremont. i got out at $0.61

Gigante

26-06-2008 23:22:14

So, anyone else been accumulating great companies at cheap prices?

ESMcCready

27-06-2008 07:28:47

Well, I'm not a stock investor...yet but I thought these companies are worth a metion.

Copper - I read an article that this metal has gone up so much that people are stealing it out of warehouses to sell it. I think it went from being a penny buyer to $4.57 an ounce in a span of 6 months.

Rockstar Games - Yes, they are on the stock market. And if you don't know who Rockstar Games is...its the company that makes the "Grand Theft Auto" series and also some other really good games. I would definitely buy into them when I get the money.

EA (Electronic Arts) - I agree with JordonE with this one. It's a nice investment since EA does The Sims (which is addictive as hell) and most all the sports games that come out (NBA Live, NBA Ballers, NHL, MLB, etc). I remember playing NBA Jam on the Sega Genesis when I was 10 and EA had done the game.

Nintendo - I wish I had gone head and invested in this stock when I wanted to. Once the Wii came out, it jumped from $50-70 a share to $130-150 a share. I live in the DFW area and every Wal-Mart I go to still hasn't been able to keep it on the shelf. I would hold off on it since I don't see any major games coming out for it anytime soon but that's just my opinion

Sony/Blu-Ray - I'm pretty sure there is a stock for this somewhere. And its worth getting into it. Since Tobbie (HD-DVD) has dropped out of the running, this stock is soaring and probably won't see an end to it.

Gamestop - I think they have a stock. I just think if you are loyal to the store, you should buy in. They have everything you need and the people actually know what they are talking about when it comes down to games. PLUS, you can sell your games here and buy used systems that actually work. I say, with the recession going on and teenagers realizing pre-own can be just as great as brand new, this company is in for a treat, if it isn't already having a few.

Also, I don't know if I would want to be invested in Microsoft right now...with the complaints about Vista and Gates leaving the company...something just spells bad times for me. Also, even though its doing horribly right now, I would look into Yahoo stock.

Yahoo given me my first taste of what the internet can do 12 years ago. And when I discovered YIM, it was all over to me. I miss the User Chatrooms but hey, I think they will make a come back sooner or later. Yahoo is the underdog right now and I'm rooting for them.

Plus, I'm not a Google fan. Google Adwords to me sucks and is expensive and only for big companies who have major traffic coming to their websites. Now, I must admit, the search engine is great ESPECIALLY for images but other then that. I'm not impressed. I guess I just like Yahoo's social focus more. Google has the "flashy" stuff but no humanity to it I guess. But that's just me.

To me, the best way to know if something is good or not, is if it is on MSN.com's homepage. That strat hasn't failed me yet.

tylerc

27-06-2008 08:17:17

I don't read enough/have enough money to make investing in the stock market worthwhile for me, but I just made a $1,000 contribution to my Roth IRA at T. Rowe Price.

Gigante

27-06-2008 17:57:07

[quote1d29ac0e87="ESMcCready"]Well, I'm not a stock investor...yet but I thought these companies are worth a metion.

Copper - I read an article that this metal has gone up so much that people are stealing it out of warehouses to sell it. I think it went from being a penny buyer to $4.57 an ounce in a span of 6 months.

Rockstar Games - Yes, they are on the stock market. And if you don't know who Rockstar Games is...its the company that makes the "Grand Theft Auto" series and also some other really good games. I would definitely buy into them when I get the money.

EA (Electronic Arts) - I agree with JordonE with this one. It's a nice investment since EA does The Sims (which is addictive as hell) and most all the sports games that come out (NBA Live, NBA Ballers, NHL, MLB, etc). I remember playing NBA Jam on the Sega Genesis when I was 10 and EA had done the game.

Nintendo - I wish I had gone head and invested in this stock when I wanted to. Once the Wii came out, it jumped from $50-70 a share to $130-150 a share. I live in the DFW area and every Wal-Mart I go to still hasn't been able to keep it on the shelf. I would hold off on it since I don't see any major games coming out for it anytime soon but that's just my opinion

Sony/Blu-Ray - I'm pretty sure there is a stock for this somewhere. And its worth getting into it. Since Tobbie (HD-DVD) has dropped out of the running, this stock is soaring and probably won't see an end to it.

Gamestop - I think they have a stock. I just think if you are loyal to the store, you should buy in. They have everything you need and the people actually know what they are talking about when it comes down to games. PLUS, you can sell your games here and buy used systems that actually work. I say, with the recession going on and teenagers realizing pre-own can be just as great as brand new, this company is in for a treat, if it isn't already having a few.

Also, I don't know if I would want to be invested in Microsoft right now...with the complaints about Vista and Gates leaving the company...something just spells bad times for me. Also, even though its doing horribly right now, I would look into Yahoo stock.

Yahoo given me my first taste of what the internet can do 12 years ago. And when I discovered YIM, it was all over to me. I miss the User Chatrooms but hey, I think they will make a come back sooner or later. Yahoo is the underdog right now and I'm rooting for them.

Plus, I'm not a Google fan. Google Adwords to me sucks and is expensive and only for big companies who have major traffic coming to their websites. Now, I must admit, the search engine is great ESPECIALLY for images but other then that. I'm not impressed. I guess I just like Yahoo's social focus more. Google has the "flashy" stuff but no humanity to it I guess. But that's just me.

To me, the best way to know if something is good or not, is if it is on MSN.com's homepage. That strat hasn't failed me yet.[/quote1d29ac0e87]

You do understand that anything you read about is already priced into a stock, right? The author has been working on the pieces for days if not weeks. Even if you receive whatever it is first, at least 50 people saw it before you and acted. Investing on things you read is silly. It's good for taking in macro information that gives a good idea of the big picture, but not for investing in individual companies. Stock prices move when something unexpected happens, not when something that's expected happens. This is the reason many companies try to beat earnings, not much earnings.

As for copper, I'm assuming you're talking about the spike that started in 2005 or so. The price basically doubled from 2 to 4 dollars, but I dunno about going from pennies to 4+. Also, copper is a pretty crappy investment over time. Holding from 93 to 2004 would have yielded a return of 0%. Sure, you can do good during a speculative bubble if you buy and sell with great timing, but that's chance and I'm not a fan of chance.


[quote1d29ac0e87="tylerc"]I don't read enough/have enough money to make investing in the stock market worthwhile for me, but I just made a $1,000 contribution to my Roth IRA at T. Rowe Price.[/quote1d29ac0e87]

What do you invest in? I am assuming you meant you buy index funds and not individual stocks.

tylerc

27-06-2008 20:47:11

Yeah, it's a Global Stock mutual fund I believe.

ESMcCready

28-06-2008 06:34:20

[quoted899b7f2cf]You do understand that anything you read about is already priced into a stock, right? The author has been working on the pieces for days if not weeks. Even if you receive whatever it is first, at least 50 people saw it before you and acted. Investing on things you read is silly. It's good for taking in macro information that gives a good idea of the big picture, but not for investing in individual companies. Stock prices move when something unexpected happens, not when something that's expected happens. This is the reason many companies try to beat earnings, not much earnings.

As for copper, I'm assuming you're talking about the spike that started in 2005 or so. The price basically doubled from 2 to 4 dollars, but I dunno about going from pennies to 4+. Also, copper is a pretty crappy investment over time. Holding from 93 to 2004 would have yielded a return of 0%. Sure, you can do good during a speculative bubble if you buy and sell with great timing, but that's chance and I'm not a fan of chance.[/quoted899b7f2cf]

You are right about the reading but isn't that how you figure a stock to get into? Reading about it, analyzing it, and going for it?

Plus, alot of people don't know that some of those stocks are on the market place (like Gamestop and Rockstar Games). I think Rockstar though is traded under something else...I do believe its TTWO!

But yea, I like penny stocks. Of course they are good for people who are just learning but they are also for someone who isn't looking to make thousands really but just looking to turn 2 cents into 10 and also want to invest but don't have 100s of dollars to blow in one shot.

I understand what JordanE is saying with the whole some people will just be happy getting a small return off of their stocks.

I mean, I didn't state what I said as fact or oh so right. I just stated what I pieced together and could see as being a good buy.

Gigante

28-06-2008 13:24:25

[quote91351b8834="ESMcCready"]

But yea, I like penny stocks. Of course they are good for people who are just learning but they are also for someone who isn't looking to make thousands really but just looking to turn 2 cents into 10 and also want to invest but don't have 100s of dollars to blow in one shot.
[/quote91351b8834]

Advertising penny stocks to people on the board that are new to investing is IMO some of the worst advice in this thread. Penny stocks are not investments, but mere speculations. They are often hyped by investor relations departments that act as PR firms. They face less regulation. New investors should stick with regulated companies on the NYSE. You can buy lots of young, small-cap companies that tons of analysts don't follow. These are very different from penny stocks, which can easily be manipulated due to their low volume and low price.

ESMcCready

28-06-2008 18:51:19

Well Gig...what would you rather them lose?

Buying $20 worth in a share at $5 or less and losing money or buying stock at $100 a share and loosing money...

And I'm not advertising, none of us are advertising. We are just stating our opinions and what has worked best for us.

I say, telling someone to go after a bigger stock that they can't gather any information on is a BIIIIGGGG mistake, especially when you are just learning. That's like telling someone to go jump from a plane without a chute!

Every stock can be manipulated...isn't that one of the reasons why Martha had to go to jail?

I mean, we all know the Revlon company and go look at what their stock price is...

Like I stated before, I'm not an investor in stock yet but I've been looking into getting into it for the past 5 years. Nothing big or anything. In fact, I don't plan on putting no more the $500 unless something big or new comes along that I want in on. I just want to buy a share here and there. Not hundreds!

It's just my 2 cents. lishrugli

Gigante

01-07-2008 23:28:48

[quote04e914bf19="ESMcCready"]Well Gig...what would you rather them lose?

Buying $20 worth in a share at $5 or less and losing money or buying stock at $100 a share and loosing money...

And I'm not advertising, none of us are advertising. We are just stating our opinions and what has worked best for us.

I say, telling someone to go after a bigger stock that they can't gather any information on is a BIIIIGGGG mistake, especially when you are just learning. That's like telling someone to go jump from a plane without a chute!

Every stock can be manipulated...isn't that one of the reasons why Martha had to go to jail?

I mean, we all know the Revlon company and go look at what their stock price is...

Like I stated before, I'm not an investor in stock yet but I've been looking into getting into it for the past 5 years. Nothing big or anything. In fact, I don't plan on putting no more the $500 unless something big or new comes along that I want in on. I just want to buy a share here and there. Not hundreds!

It's just my 2 cents. lishrugli[/quote04e914bf19]

Very few stocks sell $100+ because there of the emotions that come with a stock being worth three digits. You can buy great companies like General Electric, Disney, and tons of others for well below $100. If you only have $20 to invest, why waste your time?

I am not sure what you mean when you say telling people to go after a big stock they can't get information on. Stocks of popular companies are tracked by analysts and institutions and the media, thus there is more information available on them, not less.

And yes, stocks are manipulated daily by hedge funds. Companies such as Enron are perfect examples of how major scandals can go on. But none of this compares to the pump-and-dump that plagues penny stocks. Why do you think they send direct mail to people to tell them how great their stock is?

btw, Martha went to jail for insider trading, she didn't manipulate stock. She was told ahead of time the bad news the company had yet to released and sold her stock.

Don't take anything above the wrong way, not trying to bash you, but I like lively debate. I like people to present facts against what I say because it either makes me further prove my argument or i learn something knew.

mcal44

02-07-2008 17:03:05

what is your portfolio allocation to alternatives gig?

ESMcCready

02-07-2008 17:10:18

[quote7260659547="Gigante"][quote7260659547="ESMcCready"]Well Gig...what would you rather them lose?

Buying $20 worth in a share at $5 or less and losing money or buying stock at $100 a share and loosing money...

And I'm not advertising, none of us are advertising. We are just stating our opinions and what has worked best for us.

I say, telling someone to go after a bigger stock that they can't gather any information on is a BIIIIGGGG mistake, especially when you are just learning. That's like telling someone to go jump from a plane without a chute!

Every stock can be manipulated...isn't that one of the reasons why Martha had to go to jail?

I mean, we all know the Revlon company and go look at what their stock price is...

Like I stated before, I'm not an investor in stock yet but I've been looking into getting into it for the past 5 years. Nothing big or anything. In fact, I don't plan on putting no more the $500 unless something big or new comes along that I want in on. I just want to buy a share here and there. Not hundreds!

It's just my 2 cents. lishrugli[/quote7260659547]

Very few stocks sell $100+ because there of the emotions that come with a stock being worth three digits. You can buy great companies like General Electric, Disney, and tons of others for well below $100. If you only have $20 to invest, why waste your time?

I am not sure what you mean when you say telling people to go after a big stock they can't get information on. Stocks of popular companies are tracked by analysts and institutions and the media, thus there is more information available on them, not less.

And yes, stocks are manipulated daily by hedge funds. Companies such as Enron are perfect examples of how major scandals can go on. But none of this compares to the pump-and-dump that plagues penny stocks. Why do you think they send direct mail to people to tell them how great their stock is?

btw, Martha went to jail for insider trading, she didn't manipulate stock. She was told ahead of time the bad news the company had yet to released and sold her stock.

Don't take anything above the wrong way, not trying to bash you, but I like lively debate. I like people to present facts against what I say because it either makes me further prove my argument or i learn something knew.[/quote7260659547]

Pssshhh I don't think you're bashing me! I'm just shocked someone took my 2 cents very seriously lilolli.

I mean, I was being serious about them but I didn't think anyone would respond to them. You know, I thought they would "read it, think about, take what they wanted or just go on to the next post" kinda thing.

Gigante

02-07-2008 22:59:45

[quote2b8e3b1fb9="mcal44"]what is your portfolio allocation to alternatives gig?[/quote2b8e3b1fb9]

Alternatives as in metals and commodities? Or what exactly do you mean by alternatives?

KnightTrader

03-07-2008 18:50:35

I made a killing shorting MXC in the last 7 days. Shorted 100 shares at $40. It's at $28.90 now and it's going to drop further.

mcal44

03-07-2008 19:28:23

[quoted42758b4e3="Gigante"][quoted42758b4e3="mcal44"]what is your portfolio allocation to alternatives gig?[/quoted42758b4e3]

Alternatives as in metals and commodities? Or what exactly do you mean by alternatives?[/quoted42758b4e3]

Well, for purpose of discussion let's say real estate, hedge funds, private equity and commodities.

Gigante

03-07-2008 22:37:01

[quote1548732559="mcal44"][quote1548732559="Gigante"][quote1548732559="mcal44"]what is your portfolio allocation to alternatives gig?[/quote1548732559]

Alternatives as in metals and commodities? Or what exactly do you mean by alternatives?[/quote1548732559]

Well, for purpose of discussion let's say real estate, hedge funds, private equity and commodities.[/quote1548732559]

Sadly, I'm not a millionaire so it makes it a little hard to invest in hedge funds.

As far as real estate, obviously buying to rent is the only way to go. People are fooled by the appreciation they have seen since 1997 and think it's always like this. I am currently looking to buy into a place with a partner to build a home that would be half vacation home, half rental and would pay for itself. I also do not invest in commodities. In an ideal world I would have my hand in all pots of decrease my exposure to the downside (and also the upside), but investing is not my job and thus I only have a limited amount of time to devote to it. I don't like investing without doing my homework and if I don't have the time I'd rather not invest than invest foolishly (without doing proper DD).

mcal44

04-07-2008 20:43:40

[quote6e86458dd7="Gigante"][quote6e86458dd7="mcal44"][quote6e86458dd7="Gigante"][quote6e86458dd7="mcal44"]what is your portfolio allocation to alternatives gig?[/quote6e86458dd7]

Alternatives as in metals and commodities? Or what exactly do you mean by alternatives?[/quote6e86458dd7]

Well, for purpose of discussion let's say real estate, hedge funds, private equity and commodities.[/quote6e86458dd7]

Sadly, I'm not a millionaire so it makes it a little hard to invest in hedge funds.

As far as real estate, obviously buying to rent is the only way to go. People are fooled by the appreciation they have seen since 1997 and think it's always like this. I am currently looking to buy into a place with a partner to build a home that would be half vacation home, half rental and would pay for itself. I also do not invest in commodities. In an ideal world I would have my hand in all pots of decrease my exposure to the downside (and also the upside), but investing is not my job and thus I only have a limited amount of time to devote to it. I don't like investing without doing my homework and if I don't have the time I'd rather not invest than invest foolishly (without doing proper DD).[/quote6e86458dd7]

Yeah, I didn't expect you to say that you were an accredited investor/qualified purchaser, but you can get exposure without being so. For example, a mutual fund like Hussman Strategic Growth (HSGFX) has some very hedge fund like characteristics.

I appreciate the fact that this isn't your job, but if your serious about it you should market a target asset allocation and work towards it (even if it is long term). There's a lot more in the investment spectrum then long positions on large-caps (not saying that's what you have, just that most people think that's all that exists).

Buying to rent can be a good play. Some REITs interest me, but you have to be extra cautious about how the market is valuing them.

I'm working in private equity now and it's certainly a whole different ball game then the publicly traded stuff.

JKirk

16-10-2008 19:07:22

What a roller coaster, fellas! Let's separate the men from the boys, shall we? Who's jumping in and who's jumping out? Has anybody invested into this volatile market? If so, what'd you take?

I took Apple on Monday for around $115.00. I expected them to release the sub-$800 laptops or at least something a little more innovative for a short term return. Not panicking though, Apple will be solid in Q4 I believe and I'll just hold on till then.

I can't believe Google reported such high profits, now the thing is soaring back up... Thoughts?

slambam

16-10-2008 20:13:05

If your buin, go get some GM, if I woulda known this thread was here I woulda said it a week ago. In the past week, it's lower than its been in a loooong time. And by long time I mean like 50 years. It probably already bottomed out at $4.sum last week, but still a good buy at $6.sum right now.

mookieb2

16-10-2008 20:54:24

About to pull the trigger on GM next week. (pure speculation, i know they suck right now)

Am buying more conoco phillips as well and would love to have an extra 1,000 or so to buy chesapeake energy.

Also, upping my job withholding to buy more of my commidity mutual fund since it is in the tank right now. gonna be snapping up as many shares as possible.

Im relatively young still, I can handle the roller coaster.

theysayjump

16-10-2008 21:32:00

Most places I read or hear are saying to put your money in things people will always need, like food.

Anyone doing this?

The stock in my employer 401k has dropped from around $61 at the start of the year to $39 as of last night. Good time to buy in I guess.

JKirk

17-10-2008 06:07:13

[quotef4f714b9da="slambam"]If your buin, go get some GM, if I woulda known this thread was here I woulda said it a week ago. In the past week, it's lower than its been in a loooong time. And by long time I mean like 50 years. It probably already bottomed out at $4.sum last week, but still a good buy at $6.sum right now.[/quotef4f714b9da]

I'm not sure if I agree with that investment. GM may bounce back up, but I just don't consider them a sound company. Their main products are all SUV's and trucks with low MPG, am I right?

mookieb2

17-10-2008 09:41:19

Wait for a week or 2 before buying GM. Think of it like an airline stock from a few years ago, they may go bankrupt, but within a year you'll probably double your money. At $5 or below a share (don't buy it above 5 or maybe even 4) this is a great pure speculation play.

mcal44

18-10-2008 12:36:49

I'm doing a lot of buying these days. I don't think we've hit the bottom but I think we are close enough that it makes sense to make the value plays.

GM, in my opinion, is not a stock to invest in right now. They are going bankrupt or they are getting a government bailout - a purchase of Chrysler would just delay either of the two.

Now's the time to buy good companies with solid balance sheets. Debt is the greatest danger of any business right now.

Gigante

19-10-2008 19:58:01

I agree, great companies are cheap these days. GE, KO, HOG, DIS, BBY, UNH, PFE. You can get some great companies with stellar dividends (5%+) and not worry so much as stocks fall a little more because you will be collecting a dividend higher than treasuries and you can simply wait for the rally.

theysayjump

19-10-2008 23:09:53

What would you guys recommend for someone starting out in trading stocks?

It's something that's intrigued me for a while I've just never done anything about it.

phriq

20-10-2008 07:57:53

[quote1a09c1bccf="theysayjump"]What would you guys recommend for someone starting out in trading stocks?

It's something that's intrigued me for a while I've just never done anything about it.[/quote1a09c1bccf]

I have also been curious about the same thing. I just have never known where or even how to start. But i figured that coming up is when you should buy, when everything is so low... thoughts?

mookieb2

20-10-2008 07:58:10

[quoted6bf8ced1b="mcal44"]I'm doing a lot of buying these days. I don't think we've hit the bottom but I think we are close enough that it makes sense to make the value plays.

GM, in my opinion, is not a stock to invest in right now. They are going bankrupt or they are getting a government bailout - a purchase of Chrysler would just delay either of the two.

Now's the time to buy good companies with solid balance sheets. Debt is the greatest danger of any business right now.[/quoted6bf8ced1b]

I agree, that's why I am buying more cop and chk, plus bumped up my (403b) mutual fund witholding from work.

Gm is just a speculative play to try and double or triple $1,000.

I remeber the airlines from a few years ago when they were all going bankrupt. If you had put a little money ion AA, you made a killing. GM for me is just something to play with. Not money Im afraid to lose.

tylerc

20-10-2008 11:58:01

My Roth IRA has gotten killed. I put $2,000 into it between this summer and last summer and it's worth $1,079 and change as of last week.

JKirk

20-10-2008 17:38:53

Two stocks to consider in these troubled times PG and CLX. Do you find yourself buying less toilet paper or bleach since the economy has gotten bad?

hehehhehe

20-10-2008 18:01:52

[quote78e1f5254f="theysayjump"]What would you guys recommend for someone starting out in trading stocks?

It's something that's intrigued me for a while I've just never done anything about it.[/quote78e1f5254f]
My advice would be to ignore stock picks given out on a freebie forum.

Plus, only pick stocks if you are investing a decent amount of money, because any returns you get might be eaten up by transaction fees. Only do it if you get some fun out of it. Otherwise, if it's for a long term investment, just invest in index funds.

Aren't there websites that let you simulate a portfolio? Maybe you can try that.

theysayjump

20-10-2008 18:25:59

Well I've been playing around with UpDown.com, trying to figure out what it's all about but obviously it's pointless without knowing how he system works.

I found an "Investing 101" guide on Investopedia and they have a whole bunch of guides and tutorials to help people who are new to investing and it's pretty good so far, but I'd mainly be doing it just have some fun. If I can get that hang of it and know what's going on then maybe I'd take it more seriously.

JKirk

21-10-2008 18:11:16

[quote9d78dba8d3="theysayjump"]Well I've been playing around with UpDown.com, trying to figure out what it's all about but obviously it's pointless without knowing how he system works.

I found an "Investing 101" guide on Investopedia and they have a whole bunch of guides and tutorials to help people who are new to investing and it's pretty good so far, but I'd mainly be doing it just have some fun. If I can get that hang of it and know what's going on then maybe I'd take it more seriously.[/quote9d78dba8d3]

I don't know how much you understand about the stock market already but when I bought the book below, I really had no foundation. It was a pretty good book, I got busy and couldn't break down the technical chapters

http//www.amazon.com/Investing-Dummies-Business-Personal-Finance/dp/0764599038/ref=sr_1_1?ie=UTF8&s=books&qid=1224637723&sr=8-1

theysayjump

23-10-2008 00:10:23

I got that book but I'm still making my way through Investopedia's guide and their online investment simulator.

What sites do you guys use to do your trading?

JordanE

23-10-2008 00:44:29

How is everyone doing?

I sold all of my silver at $18.72/oz when the spot hit below $17. I managed to make about $150 on my holdings. Not that great of a return considering how long a I held, but I'm happy I got out in the green, as opposed to about 40% loss I would be faceing if I still owned.

I have been considering getting back in, with silver currently at $9.65/oz I believe its undervalued.

I got killed in the stock market, but I got out on the way down as opposed to the very bottom (which it probably hasn't hit yet) I wish I had more capital, its a great time to buy some stocks, but with school underway it's not exactly the season of prosperity for myself.

TravMan162

23-10-2008 06:24:45

^ I'm thinking it's near the bottom. Especially with Jubak saying "buy buy buy," and with the sheer beating everything has taken, we can't be far off till people take the bull approach and realize everything is undervalued.

I guess this is how the market corrects itself, eh? People eventually trade panic for opportunity.

Twon

23-10-2008 06:37:19

How much money do you think you need to start out doing some trading?

tylerc

23-10-2008 07:22:57

I've heard you shouldn't invest unless you've got about $10k to play around with.

doylnea

23-10-2008 07:58:16

Um, you can "play around" with as much money as you're comfortable losing, be that $100 or $100K.

Twon

23-10-2008 08:10:16

hmmm.... I could afford to lose $100.

TravMan162

23-10-2008 08:43:31

$100 isn't really enough to trade with. I mean, unless you're going with penny stocks which are mainly speculative, and with the way things are going, you don't want to solely invest into speculation.

Because of buying and selling fees, (scottrade is $7 per trade to buy and sell) you're going to be losing most of your hundred just to buy in and cash out (assuming you're going to have a diversified portfolio.)

You don't just want to buy shares in one company, because if they take a hit, you take a hit with no other gains to fall back on in the wash.

You generally want a diversified portfolio that has shares in companies of varying markets. For instance, take a tech stock, a housing stock, etc, etc. The way I understand it is that you want 4-5 stocks from different areas with the last one being pure speculation.

Plain and simple, $100 is not enough and you will most likely lose it.

Twon

23-10-2008 09:17:49

But I don't have more than that Trav. Can't you make a post saying the exact opposite of what you just said?

about 10 years ago, I would ficticiously buy and sell to try and get the hang of it. Of course, I started with $50,000. I think I ended up making like $20,000 in 2 months. Too bad it wasn't real.

TravMan162

23-10-2008 10:22:38

well the thing is, shares (at the minimum) are generally at least a few dollars. So say the shares of the stock you are selecting are going for like $5 each. You need to come up with $7 flat out just to even buy shares, so you're down to $93. Then you want to save $7 to cash out with, so you're down to $86. That's before anything even happens.

Since you're playing with $86, you are ultimately forced into only buying into one stock, and at the rate of $5/share, you can only get 17 shares. Now do the math here. You are going to need your $5/share stock to go up $1/share, JUST TO RECOUP YOUR LOSSES FROM THE BUY IN AND THE SALE. The chances of the stock going up 20% within the amount of time you are looking to profit is slim to none, and that 20% wouldn't even net you a profit.

I'd say to lowball it, you would need 4 different stocks and at least $500 to invest in each stock. The best would be a diversified portfolio of 5 specific stocks that you could invest $1000 into each.

You are going to lose your money if you invest $100, I promise.

hehehhehe

23-10-2008 19:18:10

As far as diversification goes, you're really better off just investing in index funds or mutual funds like I said above, just try to minimize the fees.

If you really want to know how to do valuation, there are plenty of guides online (b-school professors tend to post everything online, including their spreadsheet models) but I don't think it's worth it. The time it will take you to learn all that on your own will be quite long, and the odds are you won't do it correctly (even equity analysts get it pretty wrong). Plus, if you are building a portfolio you should learn all that crap too and have the funds to invest in enough stocks. It's really not quite as easy as saying "oh that stock has taken a beating so it must come back up," although it's a bit tempting right now because of the way some stocks have been sold.

If you have $100 to invest, take it to the roulette table.

Can't you create a fipg group at one of those investment sites?

theysayjump

29-10-2008 11:02:42

I've been playing around on Investopedia's stock market simulator and I have stocks in seven companies, but the weird thing is that two of my stocks only perform well when the others don't, and when the others do, they perform badly.

If anyone's interested we can create an FiPG game/group at Investopdeia http//simulator.investopedia.com/Game/CreateGame.aspx

Investopedia

29-10-2008 19:05:40

http//simulator.investopedia.com/Game/JoinGame.aspx?GID=94567

Password == dudelovesfinch

Game starts on November 1st and ends on Feb. 1st, 2009.

Figured I'd start it a few days ahead here to give people time to get accounts and things.

hehehhehe

29-10-2008 19:16:46

[quotea4f2bc209c="theysayjump"]I've been playing around on Investopedia's stock market simulator and I have stocks in seven companies, but the weird thing is that two of my stocks only perform well when the others don't, and when the others do, they perform badly.[/quotea4f2bc209c]
See if you can find out what their betas are, vs. some stock index. Those two may have similar correlations with the market, opposite from the remaining ones. Also look at what industries they're in.

http//en.wikipedia.org/wiki/Beta_coefficient[]http//en.wikipedia.org/wiki/Beta_coefficient

JKirk

02-11-2008 14:15:15

Don't invest this week, my fellow brothers, the market is going to go down significantly. They are announcing the unemployment rates and they are going to be [be46f739059]up[/be46f739059].

tylerc

02-11-2008 16:46:45

My econ teacher explained unemployment to us this summer like this
-they call, ask if you're employed, you say yes they say thank you.
-you say no, they ask if you're looking for work, you say yes, you're considered unemployed.
-if you're not looking, and not employed, you're not counted.

Wrong?

JKirk

02-11-2008 16:59:05

[quote80eeeb7c31="tylerc"]My econ teacher explained unemployment to us this summer like this
-they call, ask if you're employed, you say yes they say thank you.
-you say no, they ask if you're looking for work, you say yes, you're considered unemployed.
-if you're not looking, and not employed, you're not counted.

Wrong?[/quote80eeeb7c31]

Not really sure but my point was it's probably going to be just something else the media is going to report that will give people an excuse to be panicked.

ipodlover1

04-11-2008 19:07:42

Is there some sort of way I can view stocks sorted by price? (i.e. from lowest to highest or vice versa)

Investopedia

18-11-2008 21:54:18

I'm in for 600 shares of Circuit City... you know the company that just filed chapter 11 bankruptcy? Yep, I've invested in them.... 600 shares worth too!

The only way they can go is up, right?

TravMan162

18-11-2008 21:56:23

[quotec437fd233b="Investopedia"]I'm in for 600 shares of Circuit City... you know the company that just filed chapter 11 bankruptcy? Yep, I've invested in them.... 600 shares worth too!

The only way they can go is up, right?[/quotec437fd233b]

no.

theysayjump

18-11-2008 22:23:28

[quote0297d5b598="Investopedia"]I'm in for 600 shares of Circuit City... you know the company that just filed chapter 11 bankruptcy? Yep, I've invested in them.... 600 shares worth too!

The only way they can go is up, right?[/quote0297d5b598]

Couldn't they completely go out of business and not trade at all, rendering your shares worthless?

TravMan162

18-11-2008 22:25:58

haha, that's what i'm saying

JKirk

19-11-2008 06:55:41

[quote2e1cab5421="theysayjump"][quote2e1cab5421="Investopedia"]I'm in for 600 shares of Circuit City... you know the company that just filed chapter 11 bankruptcy? Yep, I've invested in them.... 600 shares worth too!

The only way they can go is up, right?[/quote2e1cab5421]

Couldn't they completely go out of business and not trade at all, rendering your shares worthless?[/quote2e1cab5421]

That's correct, and it's not looking great for them. I never really viewed them as a solid company anyways, companies like Staples and BestBuy were always more popular and more reliable.

I invested in ICLR this past Friday, so far it's already down 4% but hoping for a big rally. If anyone is looking to invest soon, keep an eye on that one. It's near it's 52-week low right now. Very solid medical company.

Investopedia

19-11-2008 08:13:12

[quote3a00dcd88c="theysayjump"][quote3a00dcd88c="Investopedia"]I'm in for 600 shares of Circuit City... you know the company that just filed chapter 11 bankruptcy? Yep, I've invested in them.... 600 shares worth too!

The only way they can go is up, right?[/quote3a00dcd88c]

Couldn't they completely go out of business and not trade at all, rendering your shares worthless?[/quote3a00dcd88c]

Yes, but that is unlikely at the moment. I bought the shares about 8 days ago at .11 cents a pop, right now they are about double that. I realize they can go completely bust and close down all together, however they have closed 155 stores so they can focus on "picking themselves up" in the other 70% or so of stores they are keeping open. Also, a certain Mexican just bought out about 30% of all the shares in Circuit City, greatly helping out the company. I know they are in bad shape, imo this is the best time to buy though because it does not look they will be belly up anytime in the near future

Admin

19-11-2008 11:13:44

starbucks is a bad buy, and so is circuit city, but you shouldn't listen to me or anyone else because it's all BS. unless you have access to information that nobody else does, there is already someone smarter, richer, faster, and more dedicated than you doing whatever get rich quick scheme you guys have dreamed up or read about

gigante must have taken a beating on WM and i predict the same fate for anyone holding CC. CC has little competitive advantage and it's suppliers have it by the balls. dismal holiday spending will be the final nail in its coffin.

my advice don't take my advice, or anyone else's. but if you are going to invest, find a simple portfolio, diversify it to reduce risk, and use the stock market as a savings account for long term wealth building and storage. now is a good time to find well-run, transparent companies with a history of sound management and fiscal responsibility - some of these are trading at prices less than their intrinsic value. buy and hold.

J4320

25-11-2008 13:24:15

[quote471cfef831="tylerc"]My econ teacher explained unemployment to us this summer like this
-they call, ask if you're employed, you say yes they say thank you.
-you say no, they ask if you're looking for work, you say yes, you're considered unemployed.
-if you're not looking, and not employed, you're not counted.

Wrong?[/quote471cfef831]

Nope that's right. I remember that from my econ classes. You're only considered unemployed if you have no job and you're looking for a job when it comes to the unemployment term in economics.

Sorry I was just browsing around in this thread a few minutes before class. I'm gonna read through all of it later probably. I've had stocks for years but now that I'm finally understanding them better (thanks to my accounting class), I'm getting more involved with it.

EatChex89

14-05-2009 18:20:02

So I don't have time to read this entire thread right at the moment, but I just opened up a Sharebuilder account and stuck in $150.

Currently $40 is invested into S&P 500 and $10 is in Lehman.

I haven't yet decided where I want to put the other $100. I plan on building up my portfolio as time goes on. I am doing automatic investment plan of $50 every month.

Any ideas on what stock is on the rise or has potential to go up?

btw. My investment plan is low-risk, low-yield. I am trying to save for retirement.

Gigante

14-05-2009 20:32:46

[quotebb685010ed="EatChex89"]So I don't have time to read this entire thread right at the moment, but I just opened up a Sharebuilder account and stuck in $150.

Currently $40 is invested into S&P 500 and $10 is in Lehman.

I haven't yet decided where I want to put the other $100. I plan on building up my portfolio as time goes on. I am doing automatic investment plan of $50 every month.

Any ideas on what stock is on the rise or has potential to go up?

btw. My investment plan is low-risk, low-yield. I am trying to save for retirement.[/quotebb685010ed]

if you really want ti invest in individual stocks, you can follow advice of some of the greats such as buffet. He doesn't invest in anything he doesn't understand. If an idiot can't understand everything about the business, that's no bueno, because chances are one day an idiot will run it.

You can achieve the ultimate diversification in one fund with a total market index. You have a low amount of money invested, so it's not really worth splitting them up individually and spending the time to research individual stocks. Even if you spend 1 hour to invest in a $10 stock and it doubles over the next year, you only made $10 for that hour of work. I know it's a learning experience, but you gotta think about your time and the benefit you're creating OVER the market average.

Gigante (who lost his shirt going long on WM, AIG, WAC, CC)

JordanE

15-05-2009 11:48:39

I sold almost all of my holdings and bought gold (4oz) with school and work I just didn't have enough time to manage my profilo. Had I held on to what i had I would be down about 34% so I'm pretty happy I got out when I did, I also managed to make a little bit of money off my gold.

SkatingCrippled

15-05-2009 15:33:29

I recently jumped into the stock game after a few months of researching and reading various books. I bought Immucor (BLUD) and EliTrade (ETFC).
300 shares of BLUD at $15.42
1300 shares of ETFC averaged at 1.41

I had my money sitting in an EliTrade complete savings account; when they raped the interest rate down to .95%, I decided to invest the money.

Anyways EatChex, it's down to YOU to decide what stocks to go into; do your research and invest accordingly. Unfortunately, no one has a crystal ball, so they can't guarantee you a stock that will shoot up.

And also, if you're planning on investing for 20+ years down the road, it's not a bad idea to get into a higher risk investment strategy; you've got time on your side.

tylerc

28-10-2009 15:12:13

Anyone have any opinions on CIT Preferred A stock (http//www.google.com/finance?q=NYSECIT-A)? Been watching this after a friend told me about it and am not sure if I want to invest. High risk, but a high reward.

Investopedia

02-11-2009 08:51:26

At 25 cents, wouldn't be too much of a risk to buy 1,000 shares, and if that price doubles, not a bad payday. Although it's been declining, the high of the stock was roughly $26. Those random spikes seen over it's history also make it a decent investment, because if it spikes up to $3 a share, that's a very nice profit.

orangejuice

02-11-2009 10:39:21

i bought ford at 1.04 in april..5000 shares. sold it at 8.12 and made over 24 grand after taxes )

tylerc

02-11-2009 20:18:07

[quotede020fd0b9="Investopedia"]At 25 cents, wouldn't be too much of a risk to buy 1,000 shares, and if that price doubles, not a bad payday. Although it's been declining, the high of the stock was roughly $26. Those random spikes seen over it's history also make it a decent investment, because if it spikes up to $3 a share, that's a very nice profit.[/quotede020fd0b9]

They just filed for Chapter 11 a couple days ago.

Investopedia

02-11-2009 22:26:14

[quoted1e7fd6c36="tylerc"][quoted1e7fd6c36="Investopedia"]At 25 cents, wouldn't be too much of a risk to buy 1,000 shares, and if that price doubles, not a bad payday. Although it's been declining, the high of the stock was roughly $26. Those random spikes seen over it's history also make it a decent investment, because if it spikes up to $3 a share, that's a very nice profit.[/quoted1e7fd6c36]

They just filed for Chapter 11 a couple days ago.[/quoted1e7fd6c36]


That's about the time I invested in Circuit City. Bought a bunch of shares for about 15 cents maybe? I forget, it ended up hitting 50 cents, but I didn't sell, then it [id1e7fd6c36]really[/id1e7fd6c36] tanked and I lost everything.